Norwegians Have Finally Managed to Lower Their Bills. It's All Thanks to a Government Program
Norwegian households have reduced their energy bills thanks to fixed-price electricity contracts, known as noregspris. New data shows that in October and November alone, total savings amounted to NOK 1.6 billion. More than 1 million consumers have benefited from this solution.
Noregspris is a fixed-price electricity contract.
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According to calculations by the Norwegian regulator RME, households in southern Norway saved over NOK 1.6 billion in just two months. Assuming one meter per household, this means an average saving of just over NOK 1,300.
The data does not include holiday homes. The greatest benefits were recorded in regions with the highest energy prices.
The data does not include holiday homes. The greatest benefits were recorded in regions with the highest energy prices.
Biggest Savings in the East and South of the Country
The highest total savings were recorded in the NO1 region in eastern Norway, where they amounted to NOK 843 million. In the NO2 region in the south, it was NOK 632 million, and in the NO5 region in the west, NOK 140 million.
In central and northern Norway, interest in noregspris remains low. This is due to the persistently low electricity prices in those areas.
In central and northern Norway, interest in noregspris remains low. This is due to the persistently low electricity prices in those areas.
The noregspris program covers households only.Photo: Bjoertvedt, CC BY-SA 4.0, via Wikimedia Commons
Government Points to Stability, Budget Costs Are Rising
The government emphasizes that fixed-price electricity contracts increase the predictability of household expenses. The solution is an extension of the support system introduced during the energy crisis four years ago.
Minister of Energy Terje Aasland points out that noregspris provides financial security for many families. At the same time, the government estimates that the cost of subsidizing the program next year could reach NOK 9.1 billion.
Minister of Energy Terje Aasland points out that noregspris provides financial security for many families. At the same time, the government estimates that the cost of subsidizing the program next year could reach NOK 9.1 billion.
State Budget and High Energy Prices
High energy prices mean higher budget expenditures, but also increased state revenues from the energy sector. Between 2019 and 2023, state revenues from energy production amounted to NOK 180 billion.
Since December 2021, a total of NOK 52.5 billion has been allocated to support households. The fixed-price electricity system thus operates in conditions of both rising public costs and revenues.
Since December 2021, a total of NOK 52.5 billion has been allocated to support households. The fixed-price electricity system thus operates in conditions of both rising public costs and revenues.
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